New Energy Pricing Rules Aim to Cut Costs for Victorians

Victorians could soon see real savings on their energy bills thanks to a proposed rule change by the Essential Services Commission (ESC). The new regulations aim to move customers onto more affordable energy plans—potentially saving households around $225 a year on electricity and $182 on gas.

The ESC’s proposal focuses on helping people who’ve been stuck on expensive energy deals for too long. Specifically, customers on the same plan for over four years, or those facing financial hardship, would be shifted to cheaper offers. These rules are designed to ensure everyone pays a fair price for their power—especially those who need the most support.

If the rules are approved, energy retailers will be required to take action for:

Customers under the Payment Difficulty Framework

Customers with more than $1,000 in debt and at least three months in arrears

Anyone who’s been on the same plan for more than four years

These customers would be moved to their provider’s cheapest available plan or one that better suits their needs.

Making It Easier to Switch

The ESC is also pushing for other consumer-friendly changes, such as:

Requiring energy companies to make switching plans simpler

Preventing retailers from restricting plan access based on payment method or communication preference

Increasing the minimum disconnection threshold from $300 to $500

These adjustments aim to protect vulnerable customers and ensure access to essential electricity services.

These proposals follow a request from the Victorian Minister for Energy and Resources and recommendations from the Energy and Climate Change Ministerial Council. Public feedback is welcome until 26 June 2025 through Engage Victoria.

Gerard Brody, ESC Chairperson and Commissioner, said these changes will directly benefit customers stuck paying the “loyalty tax”—a situation where long-term customers end up paying more than those who shop around. “It’s contradictory to support someone in hardship but still charge them more than necessary,” Mr Brody said.

The ESC’s recent report confirms that customers on older plans would be financially better off on their retailer’s best offer. The new rules aim to remove barriers that prevent people from switching, helping more Victorians access affordable energy.

At EServices4U, we believe that affordable energy should be within everyone’s reach. Our services include energy procurement, bill audits, solar and wind energy consultation, and smart energy-saving solutions to help both households and businesses reduce costs. As the energy landscape evolves with new rules like those from the ESC, we're here to ensure you're not left behind. Visit www.eservices4u.com.au to learn how we can help you power your future—efficiently and affordably.